Changes to Employer Funded Paid Parental Leave, Changes to Fixed Term Contract Exceptions and New Superannuation Payment Obligations for Employers

Entitlements to employer funded paid parental leave, if provided

On 3 November 2025, the Commonwealth Parliament passed the Fair Work Amendment (Baby Priya’s) Bill 2025 (Cth).[1]  This amending Act mandates that, if an employee has an entitlement to employer funded paid parental leave, the paid parental leave must still be paid if the child is stillborn or dies while the employee is on, or would be entitled to be on, paid parental leave.

Entitlements to employer funded paid parental leave may be found in an Enterprise Agreement (if any), contract of employment or other workplace policy.

The amending Act outlines certain exceptions to the above rule, where:

1. An employer and employee mutually agree that the employee will not receive the entitlement; or
2. An employee’s industrial instrument (Enterprise Agreement) and/or contract of employment contain other paid leave entitlements specifically relating to stillbirth or the death of a child; or
3. An employee’s industrial instrument and/or contract of employment expressly state that there is no entitlement in the case of a child’s stillbirth or death (noting that an employer cannot unilaterally alter an employee’s contract in response to the new provisions).

The penalties for non-compliance are significant; for a company that is not a small business, up to $495,000 or $4,950,000 for a serious contravention.

These amendments will come into effect the day after Royal Assent (usually within 7 to 10 working days of a bill being passed).

Changes to Fixed Term Contract Exceptions

From 1 November 2025, there are changes to the additional exceptions to fixed term contracts that apply to specific sectors.

Clients will recall that among other changes, the Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 (Cth), capped the duration of fixed term contracts to a maximum period of two years, including by reference to the renewal or extension of contracts for a period of more than two years, and the engagement of employees performing the same or similar work on consecutive fixed term contracts.[2]

Subsequent to this change, the Government introduced exceptions to these limitations for specific sectors (known as the ‘additional exceptions’) provided that certain criteria were met.[3] These exceptions were temporary and set to expire on 31 October 2025.  The recent changes introduced through the Fair Work Amendment (Fixed Term Contracts) Regulations 2025 (Cth) have varied how these additional exceptions will operate from 1 November 2025.

The Changes

From 1 November 2025, the exceptions in the higher education sector and for employees working in a public hospital have ceased.

The exceptions for the charities and not-for-profit and medical or health research sectors have been extended until 1 November 2026.

The exceptions in the organised and high-performance sport sectors have been extended, with no end date currently stipulated.

These changes have been accompanied by an updated Fixed Term Contract Information Statement, which employers must provide to all new employees engaged on fixed term contracts that begin from 1 November 2025.[4]

New Requirements for Superannuation Payments from July 2026

On 4 November 2025, the Commonwealth Parliament passed the Treasury Laws Amendment (Payday Superannuation) Bill 2025 (Cth).   The legislation will require employers to pay superannuation guarantee (SG) at the same time as salary and wages.  SG contributions will need to hit employee superannuation funds within 7 business days of receipt of their Qualifying Earnings (QE), effectively ‘payday’, from 1 July 2026.[5] An employee’s QE includes:

1. Ordinary time earnings;
2. Salary sacrifice superannuation contributions; and
3. Other amounts which are currently included in an employee’s salary or wages for SG.

The Superannuation Bill was passed in combination with the Superannuation Guarantee Charge Amendment Bill 2025 (Cth), which stipulates that an employer will face a superannuation guarantee charge for any shortfall that occurs after a ‘QE day’.[6]

Employers will need to ensure adjustments to payroll systems away from quarterly contributions, to ‘payday’ contributions, to avoid the superannuation guarantee charge which will otherwise apply.

EMA Legal is able to assist employers with any questions that may arise from these changes.

[1] Fair Work Amendment (Baby Priya’s) Bill 2025 (Cth)

[2] Fair Work Act 2009 (Cth) s 333E

[3] For more information on the additional exceptions, see Additional Exceptions on Fixed Term Contract Regulations

[4] Fixed Term Contract Information Statement

[5] Treasury Laws Amendment (Payday Superannuation) Bill 2025 (Cth)

[6] Superannuation Guarantee Charge Amendment Bill 2025 (Cth)